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Corporate Governance and Involuntary Delisting: Empirical Evidence from China
Open accessAbstract
This study aims to investigate the change in corporate governance structure of a firm in China as it approaches involuntary delisting. To this end, we try to identify corporate governance characteristics that have the most significant impact on probability of involuntary delisting at three years prior to the event, two years prior to the event, and one year prior to the event. The corporate governance characteristics examined in this study are board characteristics (board activity, board size, board independence, and presence of audit committee) and ownership characteristics (shareholder activism, ownership concentration, and insider ownership). We use logistic regression analysis on a match pair sample of surviving and delisting firms and evaluate how the governance characteristics vary over time for the two sets of firms. Our results confirm a widening gap between governance structures of delisting and surviving firms as the former approach delisting event.
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“Although not inherently a delisting mechanism, its implementation often results in delisting (Malik et al. 2014).”
From Schemes of arrangement and corporate exit: A South African perspective (2026) · cites this paper as Malik et al. 2014
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Metadata
- Authors
- Malik, M. N., Xinping, X., & Shabbir, R.
- Affiliations
- Huazhong University of Science and Technology (CN)
- Venue
- International Journal of Economics and Finance
- Published
- 2014-05-27
- Volume
- 6
- Issue
- 6
- ISSN
- 1916-971X (ISSN-L)
- 1916-9728
- OpenAlex
- W2122050599
- Cited by
- 8
- References
- 49
- Citations by year
- 2026: 1 · 2025: 2 · 2024: 1 · 2020: 1 · 2019: 1 · 2018: 1 · 2016: 1
- FWCI
- 1.42
- Type
- journal article
- Language
- en
- Open access
- hybrid
- doi.org
- Licence
- cc-by
- Locations
- International Journal of Economics and Finance (publishedVersion, cc-by)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Finance › Corporate Finance and Governance
- Social Sciences › Law › Corporate Insolvency and Governance
- Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Governance and Financial Management
- Keywords
- corporate governance, board characteristics, board independence, board size, board activity, audit committee, ownership concentration, shareholder activism, managerial ownership, Chinese listed companies, delisting risk
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